About to file chap 7, some questions.

[geo1nineteen]

Hoping my attorney will file in the next few days, looking to get some answers on some existing accounts.

Post bankruptcy you want to try to rebuild credit And I Have three credit card accounts that I'm debating on paying off but wondering if it's worth the expense. Lower balances so it's not a financial issue and wondering if they will keep my accounts open when it's all said and done.

Target/TD 

Amex 

navy (I also have bank accounts with them and I understanding they are great to work with long-term) 

What's everyone's input on this? My cards that do have balances on otherwise are significantly high due to loss of income and divorce. These three accounts total about $2500

[CreditCuriosity]

Not sure if I read what you were asking correctly but if you do a BK you cannot favor a lending institution meaning you cannot choose to pay off one lender and not another lender hoping to get back in them in the future.  Talk with your BK atty as sounds like you already have one and they will advice you as we can jut give general advise here but they certainly should know all do does/don't and make it very clear to you.   Also if you burn a credit union they will not let you borrow again until made whole even if it is a BK after the fact.  Also no all creditors will close your unsecured credit accounts during a BK unless a serious mistake is made.

[geo1nineteen]

No I'm looking to do this before filing, in the next 24 hours. So while I may be favoring some I'm hoping make this happen for the sake of credit repair.  The amex is not really a concern.

[Horseshoez]

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@geo1nineteen wrote:

No I'm looking to do this before filing, in the next 24 hours. So while I may be favoring some I'm hoping make this happen for the sake of credit repair.  The amex is not really a concern.

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It doesn't work that way; the trustee will view paying some cards down to zero while others have a high balance as favoring some over others and they take a dim view of that.  Your best option would be to file, and then after your discharge, contact the creditors you want to resurrrect, and offer them payment.  And as stated above, your cards will be closed by all creditors regardless of whether they have a zero balance or not.

[geo1nineteen]

Had a feeling about this with trustee.  Was hoping if one was zero it would linger open 

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@Horseshoez wrote:

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@geo1nineteen wrote:

No I'm looking to do this before filing, in the next 24 hours. So while I may be favoring some I'm hoping make this happen for the sake of credit repair.  The amex is not really a concern.

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It doesn't work that way; the trustee will view paying some cards down to zero while others have a high balance as favoring some over others and they take a dim view of that.  Your best option would be to file, and then after your discharge, contact the creditors you want to resurrrect, and offer them payment.  And as stated above, your cards will be closed by all creditors regardless of whether they have a zero balance or not.

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[IntrepidOhio]

I do know during your Meeting of Creditors (MOC) The trustee was very adimant about not paying one creditor and not the other, this would be grounds to dismiss your BK. 

I had a couple  open credit lines with zero balances.  They were closed by the lender  once my BK was filed.    You might get lucky and your lender keeps the account open....but DO NOT pay any lenders or transfer any property.  My trustee asked if I had done any of these in the last 6 months for lenders and 2 years for transfering property. 

[pizzadude]

Agree with others on this, you should most definitely talk w your BK attorney.

Also NFCU and Amex have been cited by others as frequently letting people back in once amounts which were included in BK are paid, and given the relatively low amounts you mentioned it might be best to proceed with the BK and pay them back afterwards if you so choose. 

[FicoMike0]

Aren't you supposed to convert everything to cash and bury it in a mason jar in your backyard? I guess these days you could convert it all to bitcoin.